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Strong earnings for Disney
Increased revenue from cable channels and a boost in attendance at its theme parks helped The Walt Disney Co. overcome a dip in revenue at its movie studio to produce higher than expected profits in the first quarter.
Disney reported Monday net income of $723 million, or 35 cents per share, for the quarter ended Dec. 31, compared to net income of $688 million, or 33 cents per share in the same period last year.
Revenue increased slightly to $8.67 billion, from $8.55 billion in the same period last year.
The results easily beat expectations of analysts surveyed by Thomson First Call, who had expected earnings of 29 cents per share.
The company said 1 cent of the quarter's earnings per share came from a one-time benefit from the resolution of tax matters and restructuring and impairment charges.
The company said it continues to expect double-digit earnings growth this year and through 2007.
The media conglomerate's networks division, which includes the ABC Television broadcast network as well as cable channels such as ESPN, delivered a 36 percent increase in operating income due mainly to higher subscription fees and advertising revenue at ESPN. Disney also saw higher ad rates at its ABC Family Channel.
Increased revenue from NFL and college football broadcasts at ABC was offset by the increased cost of the programming.
Disney did not see the benefits from such hits as "Desperate Housewives" and "Lost" in the quarter because it sold advertising inventory for lower prices last year. The company said that increased ad revenue for its hit shows will show up later in the year and result in the network becoming profitable in 2005.
Operating income at the company's theme parks increased 11 percent, boosted by an increase in attendance from international tourists.
Attendance increased in the mid single digits at the Walt Disney World resort in Florida and per capita spending increased at the company's Disneyland Resort primarily due to higher ticket prices.
As expected, operating income at Disney's film studio dropped 27 percent due to a tough comparison with the first quarter of 2004, which saw the home video release of the hit film "Finding Nemo."
Income fell 3 percent at Disney's Consumer products division, due mainly to the lack of revenue from its domestic retail stores, which the company sold last year.
Shares of Disney rose 40 cents to $28.63 at the end of regular trading on the New York Stock Exchange. They gained another 22 cents in late trading.
Increased revenue from cable channels and a boost in attendance at its theme parks helped The Walt Disney Co. overcome a dip in revenue at its movie studio to produce higher than expected profits in the first quarter.
Disney reported Monday net income of $723 million, or 35 cents per share, for the quarter ended Dec. 31, compared to net income of $688 million, or 33 cents per share in the same period last year.
Revenue increased slightly to $8.67 billion, from $8.55 billion in the same period last year.
The results easily beat expectations of analysts surveyed by Thomson First Call, who had expected earnings of 29 cents per share.
The company said 1 cent of the quarter's earnings per share came from a one-time benefit from the resolution of tax matters and restructuring and impairment charges.
The company said it continues to expect double-digit earnings growth this year and through 2007.
The media conglomerate's networks division, which includes the ABC Television broadcast network as well as cable channels such as ESPN, delivered a 36 percent increase in operating income due mainly to higher subscription fees and advertising revenue at ESPN. Disney also saw higher ad rates at its ABC Family Channel.
Increased revenue from NFL and college football broadcasts at ABC was offset by the increased cost of the programming.
Disney did not see the benefits from such hits as "Desperate Housewives" and "Lost" in the quarter because it sold advertising inventory for lower prices last year. The company said that increased ad revenue for its hit shows will show up later in the year and result in the network becoming profitable in 2005.
Operating income at the company's theme parks increased 11 percent, boosted by an increase in attendance from international tourists.
Attendance increased in the mid single digits at the Walt Disney World resort in Florida and per capita spending increased at the company's Disneyland Resort primarily due to higher ticket prices.
As expected, operating income at Disney's film studio dropped 27 percent due to a tough comparison with the first quarter of 2004, which saw the home video release of the hit film "Finding Nemo."
Income fell 3 percent at Disney's Consumer products division, due mainly to the lack of revenue from its domestic retail stores, which the company sold last year.
Shares of Disney rose 40 cents to $28.63 at the end of regular trading on the New York Stock Exchange. They gained another 22 cents in late trading.
